(b) Prepare a correct income statement for October 2017. Signed waiver of premium Costs of training a replacement A whole life insurance policy is exchanged for a term insurance policy, Which of the following will be included in a policy summary? 3. B. Aleatory contract Correct: D. Concealment. \end{array} -guaranteed/fixed/level payment, -Immediate "annuitization phase" All of the following are true of insurance except: a) protects against uncertainty b)means sharing of loss c)eliminates risk d)transfers risk Answer: Eliminates risk Question: Which of the following is NOT true about insurance? You should now have gotten the answer to your question "All of the following statements are true of liability insurance, EXCEPT:", which was part of Insurance MCQs & Answers. Group life insurance is most often issued as guaranteed annual renewable term. A) The amount of insurance of the life of any debtor may at no time exceed the greater of the scheduled or actual amount of unpaid indebtedness to the creditor. (a) Evidence of insurability is not required to renew the coverage. Study with Quizlet and memorize flashcards containing terms like All of the following are personal uses of life insurance EXCEPT A. \underline{\hspace{40pt}}. d) Graded Premium. D) Claims result from losses by a peril insured against in an insurance policy. c. Premiums may be raised at renewal d. Group term insurance may cover the . What must exist at the time of the application? A. The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? C) Completing pre-licensing training. Legal Purpose B. Insureds current and future income B) Underwriters. How has the Aswan High Dam affected the lives of Egyptians? All of the following characterize term life insurance, EXCEPT: Select one: a. &\text { Retained Earnings }\\ Correct: A Insurance . Can term insurance be both renewable and convertible? A securities license. Beneficiaries are NOT required to sign the application unless they are also the owner. when the company earns a profit and elects to share these profits, they pay a dividend to the policyholders or shareholders. A) Universal Life policies allow for policyholders to withdraw a limited portion of the policy's cash value. Concerning insurance, the definition of a fiduciary is c) Helping insureds to file claims c) Variable Premium The concept that the insured should not profit from an insurance transaction is called what? C. Application (Choose from the following options) B. b. After insurer makes an offer, what must the applicant do? ____________ is a statement that is true to the best of the persons knowledge that is making the statement. 14,500 \\ B) The reduced paid-up nonforfeiture option would provide protection until the insured reaches 100, but the face amount is reduced to what the cash would buy. b) The debtors eligible for insurance under the policy shall all be the debtors of the creditor(s). What are the (5) Factors considered with combination policies Who and What are they? A ____ contract requires that both parties perform certain duties. a) The amount of insurance on the life of any debtor may exceed the greater of the scheduled or actual amount of unpaid indebtedness to the creditor. good health Why do most states have a waiting period for couples applying for marriage licenses? Journalize the entry to transfer the total of all cost sheets completed from Work in Process to Finished Goods. Credit life d) The insurer will sue the insured for committing fraud. (c) both I & II (d) neither I nor II. Insurance is not designed to cover _____________ losses. a. whole life paid at 65 (6). 1. D. Premiums paid are deductible as a business expense. In this case, the applicant will most likely need to fill out a Statement of Good Health. (c) The number of times the coverage can be renewed is limited. \text{ ???? } b. \text { Room } & \text { Super Saver } & \text { Deluxe } & \text { Business } \\ This type of life insurance is called Compute DVDs net cash provided by (used for) operating activities during July. \end{aligned} Premiums are taxable to the employee Terms that apply to the insurer not the applicant. Predicted needs of the family after the insured's death 1) preferred risk c) Fixed premium insured is always the borrower & the beneficiary=lender This method of estimating . _____________ is a statement that is true to the best of the persons knowledge that is making the statement. Indicate by a plus (+)(+)(+), minus ()(-)(), or zero (0)(0)(0) if the factor would increase, decrease, or have an indeterminate effect. Whoso. Which of the following about decreasing term insurance is true? 2)Legal Purpose An insured becomes disabled at age 22 and can no longer work. Findefch a Wife,' 'Pnrple and Fine -men,'^The' Day of Temptation,' ' Of Royal Blood,' etc., etc . Cash value is invested in the stock market. 2)premium gets lower. b) Hazard Which method makes the most sense for her to employ? Correct: A. d) The policy can be reinstated by paying back all policy loans and premiums. B. (2), 1)HIPPA WorkinProcess$229,040.00EmployeeIncomeTaxPayable$33,880.00FactoryOverhead78,960.00SocialSecurityTaxPayable19,096.00Cash250,558.00MedicareTaxPayable4,466.00\begin{array}{lrlr}\text { Work in Process } & \$ 229,040.00 & \text { Employee Income Tax Payable } & \$ 33,880.00 \\ \text { Factory Overhead } & 78,960.00 & \text { Social Security Tax Payable } & 19,096.00 \\ \text { Cash } & 250,558.00 & \text { Medicare Tax Payable } & 4,466.00\end{array} A ______ will receive unfavorable tax treatment. Difference between Universal Life Insurance and Whole Life Insurance? Exclusion Categories d) Fiscal responsibility. a) Remains level. C. Hazards D. Department of Treasury C. Application b) Cost of living rider. 6)Explain Free Look period-10-30 days- unconditional refund that begins when policy is delivered. Endowments means policy is what(2) things? Joe, Larry, and Curly own a small business. \end{aligned} 1) Family Maintenance(breadwinner) c) 15% for early withdrawal Which of the following statements about limited-payment life insurance is true? (a) I only Correct: A.A peril. d) Producer. When the agent delivers the policy, collects the initial premium, and the applicant completes and acceptable statement of good health C. Social Security works exactly same as private insurance. the underwriting process is approved for: considers Lloyds of London an Alien insurer What is an exchange of a whole entire life policy for another? Quarterly working capital levels for your firm for the next year are included in the following table. The policy is a contract of adhesion. If the conversion cost is the same for both types of rooms, would you recommend converting the office to a Type I or a Type II room? c) Policy loans are taxable distributions. Long term- the longer the policythe more spread out the policy premiums are. Insurance is considered a transfer of risk. d) Limited pay. -age 100. a) Consumer Privacy Act 1) insured gets higher amount Cash value is the same as ___________ when the policy matures. A policy summary usually includes all the listed information, and must be delivered along with a new policy. 3. is proved to be untrue, whether intended as a falsehood or not, and may void the contract. B. Buy-Sell Agreements pay in the event of a medical emergency \end{array} 3)substandard risk. If applicant is not the insured- then insureds signature is required Any profit realized in the operation will be used to provide dividends to stockholders as well as surplus funds that may be used as a buffer for future adverse experience. Cash values can be borrowed at any time 3) Ordinary. B. D. The face amount remains the same throughout the life of the policy. It is most appropriate when an insured needs lifetime protection. Who represents the insured when dealing with insurance companies? 3. Weiss and Fitch are two of these services, although there are more. An underwriter will consider each of the following factors when evaluating a risk, except: A. When an insurance policy is not clear, the court will usually interpret in favor of the insured because of which characteristic? Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). A) The insurance policy usually has a provision specifying how a notice of loss is to be made to the insurance company. 1)cont. The company records manufacturing costs by job number and uses a factory overhead applied rate to charge overhead costs to its products. (c) both I & II (d) neither I or II, Diane is a single parent. EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017, Salesrevenue$780,000Less:OperatingexpensesRawmaterialspurchases$264,000Directlaborcost190,000Advertisingexpense90,000Sellingandadministrativesalaries75,000Rentonfactoryfacilities60,000Depreciationonsalesequipment45,000Depreciationonfactoryequipment31,000Indirectlaborcost28,000Utilitiesexpense12,000Insuranceexpense8,000803,000Netloss$(23,000)\begin{array}{lcc} Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, ICEN6003: IC Engines Operation and Constructi. *Both not taxable. D. Alien Correct: C. Condition contract, enforceable only under certain conditions. (c) conversion provision a. mentally counting backward from 1,0001,0001,000 c) Guides describing company financial integrity \text{Accounts Payable} & 104 & 95 & 95 & 97 \\ Rates Economics questions and answers. c. thoughts of harming a neighbor &\text { Accumulated depr.-equipment }\\ Medical exams provide information on current health. D. Claim History B) In insurance, fraud is the intentional misrepresentation of material information that is crucial when deciding whether or not to write a contract for an applicant. D) the minor in a juvenile policy. An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. Which of the following statements concerning buy-sell agreements is true? As her friend, you have been asked to review the income statement and make necessary corrections. has reached its final destination and can be paid out in full. (a) They increase at an increasing rate. d) Buyer's Guide. An Insurer organized in another state than the state in which it is authorized to do business is known as which type of insurer? If the premium was not collected at the time of the application, the producer may also be required to get a Statement of Good Health from the applicant at the time of policy delivery. Correct: B. B. ___________ is the persons whose death triggers payment. \hline (\$ 000) & 1 & 2 & 3 & 4 \\ C. Whole life What will probably happen? Which of the following is the basic source of information used by the company in the risk selection process? Term. Benefits received are considered income taxable S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. Correct: B. 4)explain policy & provisions What happens when a policy is surrendered for its cash value? c) Conditional A. Only the MIB will provide information about an applicant's medical history. Retention, Avoidance, and Transfer are all _________________. c) 10 years. \end{array} c) An agent offers tickets to a baseball game as an inducement to buy insurance. (3), 1)bank trust officer What are (4) characteristics of permanent insurance? The issuance of a policy or binder is not part of the consideration element of an insurance contract, it is part of the _______ ________. Past-due interest on a policy loan is added to the total debt. The premium is level and guaranteed not to increase. 3)Consideration Whats the cheapest type of permanent insurance? All of the following are true regarding life insurance illustrations EXCEPT. ____________ is the transfer of the right of recovery from the insured to the insurance company. _____________ is an employer paid disability and health insurance coverage that covers job related illnesses or injuries. The shifting of risk of loss to a larger homogeneous group is known as what? \hline & \text { Jul 1 } & 55,000 \\ D. The face amount remains the same throughout the life of the policy. In a conditional receipt if the policy holder dies before delivery of the policy what has to happen for the benefits to be paid? c) Extended term The minimum FREE LOOK period is how many days? C. Buy-Sell agreements are normally funded with a life insurance policy &\text { Accounts receivable }\\ AKA-payout phase. \text{Inventory} & 201 & 505 & 905 & 52 \\ c. Using the payback period, which project should Bill choose? ? Waiver of premium is a rider that can be added to a life insurance policy, and not something to be obtained from the applicant. If someone dies within the Grace period, what happens? C. It's a decreasing term insurance. a) Accepted accounting principal. 2)attorneys 2)Family Income(decreasing term-policy) All of the following statements about term insurance are trueEXCEPTa. Only one party is giving a legally enforceable promise- A one-sided contract is what? What does "liquidity" refer to in a life insurance policy? C) An insurance contract must contain a copy of the original application. 4. B. a) An agent offers the use of his lake house to person as an inducement to buy. Rates are considered inadequate when they do not cover projected losses and expenses. -immediately considered fully paid up To ensure suitability of annuity products, producers must obtain relevant information about the consumer's age, income, financial status, tax status, financial experience and objectives. The 7 paytest is used to determine if a policy is a _______? Universal Life is also known as two things what are they? (must exist at the time of application). Study with Quizlet and memorize flashcards containing terms like All of the following are true regarding group term life insurance, EXCEPT: a. Individuals covered under the policy received a certificate of insurance. Which of the following best describes a surplus lines broker? A. c) Whole Life C. A surplus lines broker accepts business only from non- resident agents Non-Participating (stock) Life Insurance Policy. Insurance is designed to cover both intentional and unintentional losses. -Staged intervals ? Who is responsible for making sure the application is completed properly and all necessary info is obtained? D. Concealment d) Older. An insurance consultant CANNOT be which type of persons? If the insured becomes disabled, the rider allows the cost of insurance to be waived, with the exception of premium costs required to accumulate cash value, Who must notify the replacement company of a policy that is being replaced? Breach of warranty One sided contract is a ______________ contract. (c) human life value method Prior to October 2017, the company had been profitable every month. (4), 1)monthly Are insurance company underwriters allowed to discriminate? Domestic Insurer Hammond Corporation manufactures televisions. Tax-qualified annuities are subject to IRA maximum contribution limits. An Insurance broker is responsible for what? A color-coded map illustrating the current legal status of elective-specific abortion procedures in each of the individual 50 states of the United States of America; plus U.S. territories and federal district [a] As of January 31, 2023 Illegal Legally unclear or legal but no providers Legal before cardiac-cell activity [b] Legal through 15th week LMP (1st trimester) Legal through 18th week LMP . Everything else equal, how would the factor below affect the market value of a stock? still matures at age 100, -premium is paid off at one time Which of the following is the best reason to purchase life insurance rather than annuities? Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. The Terrorism Risk Insurance Program is administered by which of the following Federal entities? Foreign. An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. 3. b) The elderly Jul3117,000\begin{aligned} A persons assets & liabilities at their time of death. B) Human life value approach is determined by the loss of income that would result with the death of the insured, after making adjustments for expenses, inflation, etc. c. C. Risk Most professional liability insurance policies are written with an occurrence coverage trigger instead of a claims made trigger O c Insureds d) Primary and secondary beneficiary designations. C. Waiver They keep a high percentage of any interest earned on their policies Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. a) A retail clerk. If a parent purchases life insurance on their child all of the following are true, EXCEPT: A) The child is the insured. a) Because the insured is currently not a drug user, his policy will not be affected. d) 50% tax on the amount not distributed as required. a) Tax-qualified Upon policy delivery, the producer may be required to obtain any of the following EXCEPT B. 2. Which of the following statements about endowment policies is true? b) Index used by stock companies Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. d) Making claims payments which clearly indicate under which coverage payment has been made. The person who receives the benefit when insured dies. B. An agent and an applicant for a life insurance policy fill out and sign the application. exclusions: when the accident occurs within an illness,disease, or mental infirmity.
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